Safestore Regulatory News (SAFE)

4 May 2010

Safestore Holdings plc

Awarded 6 year management contract for Spacemaker self storage

Safestore Holdings plc ("Safestore"), the largest self storage company in the UK and Paris, is pleased to announce it has won a competitive tendering process to manage the 12 store chain of Spacemaker stores. The six year management contract will add another valuable and additional revenue source to the business and forms part of Safestore's stated strategy of managing self storage facilities on behalf of owners of these assets.

Spacemaker is a complementary business trading in a number of areas where Safestore are currently under-represented and therefore with minimal overlap. Safestore has won this contract based on a number of factors including having a demonstrable record of operating self storage across the UK and its proven ability to successfully integrate businesses and improve performance.

Spacemaker will benefit from the national footprint of the UK's No.1 self storage company and will have the additional benefits of scale and the consequent platforms of its on-line strength, national accounts and strategic alliances. Spacemaker will also have full access to Safestore's leading management information systems and award winning training.

The stores will continue to trade as Spacemaker but will undergo a high level of exterior signage and interior refurbishment enhancements as well as dual branding on the web site and specific point of sale material.

Spacemaker will be managed as a retail focused customer led business and will be subject to the same micro management as Safestore with a balanced approach to occupancy growth and rental rate improvement.

Steve Williams, Chief Executive of Safestore, commented:

"The management contract for Spacemaker was a particularly vigorous and detailed process and considered all aspects in relation to the management of the business. I am therefore very pleased that we were able to persuade Spacemaker Stores Ltd that Safestore was the right choice for growing their business and creating value. . The process considered the brand position and market leadership of Safestore as well as our proven track record. Our successes with the web, national accounts and strategic alliances also played a major part in the management contract being awarded to Safestore.

One of the main reasons for customers considering one self storage company over another is the people. We have been very impressed with the Spacemaker store teams and welcome them to Safestore. With their commitment and our comprehensive training and development programme I am confident we will see the Spacemaker business flourish.

Management contracts form part of our strategy going forward and it is especially pleasing that we should commence with a business with the quality of Spacemaker."

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